By financen | March 22, 2010 - 2:39 pm - Posted in Mortgage, Second home mortgage loans, Second mortgage loan

If you are looking for resources to get additional funds without taking new lines of credit, second mortgage will be the best option for you. With a second mortgage loan, you will be able to borrow loan against the equity on your home. There are many online mortgage lenders who are offering competitive interest rates to catch the borrowers. Browse through the internet and you will be able to find a variety of offers within minutes.

Second mortgage loan is not like a traditional line of credit. Here the loan amount is disbursed in lump sum. When the line of credit is offered, the banks wait for you to reach your credit limit. A lump sum amount can ensure that you are using the funds more responsibly, protecting the equity in your home and without damaging your credit.

When you are shopping for a second mortgage loan, prefer to shop wisely. You might have seen different banks offering lines of credit at very low introductory rates. These low introductory rates are for a certain period only. When the introductory period is over, the rates will rise abruptly. When you take a second mortgage loan, the interest rates will be fixed for the entire loan period, whether you sign up for a five year or a twenty five year period.

Many people take the advantage of a second mortgage loan to consolidate their existing debts. You know what your monthly payments will be because the interest rates are never going to change throughout the loan tenure. Some people also prefer to use the second mortgage loan amount to do home improvements, plan a vacation or pursue higher education. Any homeowner can apply for a second mortgage home loan and use the money according to their requirements. Make sure that you shop with different mortgage loan companies and get the best deal before signing up.

This entry was posted on Monday, March 22nd, 2010 at 2:39 pm and is filed under Mortgage, Second home mortgage loans, Second mortgage loan. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.


  1. March 27, 2010 @ 6:26 am

    The main advantage of second mortgage is that you can avail financing when you need it, despite having mortgaged your property once. You can obtain financing for whatever reason by mortgaging your property the second time. Using this amount to facilitate purchasing another asset would be a good idea.

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  2. October 28, 2010 @ 3:04 am

    Mortgaging you r property or your home once is really hard, yet the that;s why second mortgage has the advantage to take back, actually not all, but second mortgage will regain some of your properties that had been forclose.

  3. January 2, 2011 @ 8:06 pm

    Getting a second mortgage is an excellent way to release equity from your property. However, more and more people are finding getting a second mortgage more and more difficult since the equity in people’s homes has declined. But people with low mortgages can still release equity this way. But remember second mortgage can have its disadvantages too.

    The main disadvantage with second mortgages is that you are risking your home by using one. This is a serious risk; if you can’t pay the loan back, a second mortgage can be catastrophic. Make sure that your intended use of funds is worth the risk you’re taking by using a second mortgage. So be careful when looking for a second mortgage.

    Posted by equity release
  4. April 25, 2011 @ 7:46 am

    This is a great way to get access to cheaper funding , however I always caution clients and advise them to always increase their mortgage repayments and try to pay off the additional or second mortgage over a much shorter time period. You don’t want to retire one day and still owe on your mortgage.

  5. November 11, 2011 @ 12:09 am

    There are some fascinating points in this article but I don’t know if I see all of them middle to heart. There is some validity but I’ll take maintain an opinion till I look into it further. Good article , thanks and we would like more! Added to FeedBurner as well.

    Posted by soft skills training